Hairdressers report cuts in salon visits

An economic bellwether: Fashionable hairdresser Joh Bailey says that while many salons are facing hardship, his own have ‘held up well’ because style-conscious clients are always willing to splurge on hair and beauty.
Photo: Christopher Pearce

by
Jake Mitchell

Hairdressers have long considered themselves a trailing indicator of economic performance.

When male bankers’ bonuses are cut, one of the first things to suffer are frequent trips to the hairdresser for their wives or girlfriends. If the banker is female, such cutbacks on their own spending are also likely.

At the moment, these fashionistas provide a picture of a two-speed economy.

The middle and lower end of the market is feeling the pinch and contracting while high-end salons have exhibited a level of resilience along with other prestige brands such as Moët Hennessy Louis Vuitton and Parfums Christian Dior.

“[Executive] bonuses have been scaled back and, in return, wives have had to scale back on luscious items like [hair] extensions [which cost between $1000 and $2000]," said Sonia Stanley, managing director of Zenith Hair in Sydney’s exclusive eastern suburbs.

“The industry is shrinking. About 15-20 per cent of my smaller competitors have perished in recent times."

Clients are going longer without a haircut and big events like weddings and horse races are also failing to attract the surge in spending they once did.

Marketing executive of Toni&Guy salons, James Friess, said the average customer return rate has gone from 10 weeks to 13 weeks over the past 12 months.